Wyoming was once the hot spot that was going to save the company and now it's considered not profitable. Was it because they spent so much money so fast trying to make it work and then the market crashed from the pandemic and wells were forced to be shut in? Is there any way to make Wyoming profitable? I don't care if that asset gets sold, but what changed so fast with that BU?
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Two letters FP. Just keep using your gut like he says. Works great huh?
To @djvz+16hw1Y60, why do you suppose this is the culture at CHK? I was there for 15 years and it was similar then, especially after TLW left and AKM had a bigger hand in the day to day decisions. Always the optimist, to a fault. Slow and steady wins the race, yet at CHK the managers always seemed to push for fast results, moving way too fast on too little data.
You can't burn down the house and keep the mortgage. Now that we are not trying to keep the mortgage we can admit it's worthless.
Largely because of a Sr VP ahem FP! ahem that wouldn’t listen to his managers and slow down, allow time for the teams to assess values, problem solve issues, testing, etc. They wouldn’t wait for results before pushing them to do the next well. Red flags were raised and promptly shut down.
And yes, type curves were c-ap despite Reservoir trying to represent them accurately - but were told they were being too pessimistic and needed to change.
Asset was always trash, from the very first type curve. Sorry boys.
The previous poster ‘losing money is the drilling business’ sounds like all of his OG experience is at CHK. Great mentality/approach. CHK has been in the Rockies for some time and should’ve known long ago it wasn’t worth all the hype and money thrown at it in this last rodeo. AKM’s pump & hype, overspend mentality seems to still exist at CHK. And look at the end result.
Wildcatting is always wild speculation. Especially in this era of secondary and tertiary injection technologies and fracking, it can take years before you figure out that it's profitable, and one successful well can pay off for ten failure. You can have a whale next to ten minnows. That's how drilling is, especially onshore lower 48, where all the easy oil has been gone for half a century. If you don't know this, you shouldn't be anywhere near this industry.
It was over speculated, but some folks certainly were sincerely excited about it. Drilling certainly did screw the pooch in many ways (and geo helped), but upper management just watched and never made changes to address it. They sat and watched money get flushed downhole for months and what changed? Nothing. Continual science experiment. Ultimately, it’s their fault. That, and some of the production & facilities folks don’t know which way is up. Some, some. Not all, calm down.
It’s always been zero and many knew that. It was just all hype for Wall Street & banks. Total BS. WAYYY over speculated. Management knew that.
Drilling. Thats all im gunna say.
Yes